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At the Forex currency on Friday the British Pound Sterling rate is traded upwardon Tuesday after yesterday's sales. External background is neutral sofar, which gives market a chance to regain from previous sales.

Forex forecast: MACD indicator for the pair GBP/USD is traded in the negative area and is moving along the signal line, not giving a clear signal. Stochastic Oscillator is growing in the neutral zone andis giving a weak buy signal.

Forex recommendations: in case of breakdown at the level of 1.5530, target for sales will be the levels of 1.5540 and 1.5560. Meanwhile, at the moment, buying is a part of correction.

Great Britain is still trying to keep away from European debt problems: yesterday, during discussions of ways to increase International Monetary Fund with the help of collective contributions, London stated that it would announce its decision at the beginning of 2012.

Minutes of the last meeting of the Bank ofEngland will be released this week and it will be interesting to know comments of the members of the MPC about prospects of inflation in the country.

House price index Rightmove in the UK fell by2.7% m/m (+1.5% y/y) in December against preliminary level of -3.1% m/m (+1.2%y/y). Looking at the past performance of the index we can say that in the first 6 months of the year, house prices went up, however in the next six monthsvolatility in the sector increased and the rise in October was smoothed over bythe decline in November. In 2011 British housing sector distinguished by bothrecord low rates and tougher mortgage conditions.

The Bank of England announced earlier thataverage annual inflationary expectations reduced to 4.1% in November against4.2% in August. At the same time, two-year inflationary expectations were atthe level of 3.4% (3.5% previously)

According to Markit estimates, PMI CIPS amounted to 52.3 points in November against 53.9 points earlier; however dynamics in the sector of new houses is positive and upward trend in the sectorcan be interpreted as an indication of the future stabilization. In general,the latest data from Markit looks good and does not rule out prompt recovery ofthe economic sectors in the future. It became known earlier that CPI in the UKincreased by 0.2% m/m (+4.8% y/y) in November, as expected. British inflation slows down its pace, however the index is still too far from the target levelof the Bank of England. The data released earlier showed that retail sales BRC in the similar trading floors of the UK fell by 1.6% y/y in November againstthe forecast of -0.5%. It was the lowest level of the index since May this year.Activity in the British construction sector declined in November, which was demonstrated by statistics released at the end last week.

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